Dumb Question #3: Where is the hardcopy?

[zyzzyva57]

Okay, I buy a share of Widget, Inc., or sell a share through a "Scottrade" ...Where does this mysterious share actually reside? Who keeps track of all these virtual shares moving back and forth in cyberspace? Is there a sort of Fort Knox holding hardcopies of shares?

[optimus25]

The custodial company holds your shares electronically. Each broker has their own custodial company holding funds and stock shares held under their name but assigned to a client's account.

[zyzzyva57]

"The custodial company holds your shares electronically. Each broker has their own custodial company holding funds and stock shares held under their name but assigned to a client's account."

Using Widget as the stock, and Scottrade (in the generic sense), walk me through, please, what happens when I go on line to buy a share of Widget...

P.S., I would "Google" this question if I could form the question in a concise manner :)

[NATHAN LLOYD]

This seems like a question on a very tough final exam in a graduate course on trading.

It's just tracked electronically. You're getting too meticulous or anal about it...Don't you think?

[David Briggs]

Here's a link to an explanation of trade settlement. The process looks like something they should do an episode of the show Modern Marvels about!

http://www.pathtoinvesting.org/trips/trackingtrade/processtrade_041.htm

[zyzzyva57]

OUTSTANDING!! Thank you for the link. Love "Modern Marvels" I just like to dissect how things work. Speaking of the show and shows of this type, I note the machines, et cetera, and look them up. I like to play Master Cramer, using his ideas to find companies to set a Google Alert on to see if a concept, for example, catches on. I am still a Newbie, but things are slowly coming together at the expensive school Hard Knock U. The "History Channel," "A&E," and the like are most helpful to learn to think as our Master. "Googling" is helpful if I can form the question, which I couldn't with this question. Thank you...

[Svenwulf]

I love the history channel! HistoryCENTER is a nice alternative from the sunday morning regurgitation (sp?) I think some of their documentaries are a bit on the fluffy side, but i understand it IS cable tv.

[zyzzyva57]

It has to has to have a Fluff Factor, because otherwise the only viewers would be the few of us who are fascinated of how things are what they are or how things get to us in detail. For example, I enjoy learning in detail how a "Twinkie" is made. More importantly, I like to note the machines--who makes them--and the ingredients--who produces them...With oil, for example, what exactly is a refinery?! One company I have a Google Alert set on is California Pizza Kitchen, because as I learned on "Modern Marvels" this company is shooting for high-end pizza selling, and it may well be a nascent type company our Master likes--a regional that could or is going national. One thing I am ever strongly believing is to get stock ideas is do what Master Cramer suggests over and over: go outside the financial pages for ideas! When a stock hits the financial pages, then the Big Boys and Gurls of Wall Street have already screwed with the stock, e.g., mined the stock--ditto when Master Cramer picks a stock and has the Cramer Bounce...Ideally, you get where you can use his wisdom to find your own stock...I do believe you can more times than not beat the Wall Street HerdS...

[NATHAN LLOYD]

I know this is a little off topic, but I guess you got your answer. I saw that about your pizza company, and I remembered that the tea business is booming on CNBC. Does anyone have any good tea plays? I remember one I saw was Jones Tea.

[bahroor]

I know this is a little off topic, but I guess you got your answer. I saw that about your pizza company, and I remembered that the tea business is booming on CNBC. Does anyone have any good tea plays? I remember one I saw was Jones Tea.
Kraft Foods Inc. (KFT)--Tazo Tea
http://www.tazo.com/

[zyzzyva57]

Thought you might like to see Cramer's take: http://madmoney.thestreet.com/index.cfm?page=lookup